London property market shows signs of recovery Published: 07/10/2008

Property prices are stabilising in London as the falls begin to slow, according to new figures.

A study from haart revealed that although the average property price fell by 15 per cent over the year, the average price decreased by just 0.10 per cent in September.

The average London house price therefore now stands at £247,271 – just slightly down from £247,524 and showing signs that the market is recovering.

Despite reports of doom and gloom with the collapse of Lehman Brothers and Bradford & Bingley, figures show that there was a boost in activity last month with the average number of registered buyers going up seven per cent in one week.

There was also a significant rise in the number of first-time buyer enquiries – going up from 0.7 per cent to 21.6 per cent.

Russell Jervis, managing director of haart, said: "September started to show the first encouraging signs of green shoots, with a surge of buyers registering in order to advantage of the more affordable prices and more attractive mortgage deals that lenders were offering.

"The lower end of the market has felt less of the knock on effects brought about by the recent financial turmoil and in some areas, asking prices were met or even exceeded."

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